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REVIEW FISCAL YEAR 2022-23 SECOND AND THIRD QUARTER MEASURE M REVENUES AND EXPENDITURES
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RECOMMENDATION
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Summary
City ordinance (2016-06-07-1212) established a citizen advisory committee to review the expenditure of Measure M (Strong Communities) revenues to confirm they are made in accordance with the Measure as approved by the voters.
Background
On August 21, 2017, the City Council approved (Resolution 2017-08-21-0801) an expenditure plan with revenue and expenditure projections for the 16-year lifespan of the measure. Restoration of library and recreation services is a key element of the expenditure plan that includes increasing library and community center hours evenings and weekends.
As part of the City’s Fiscal Year (FY) 2022-23 budget development process, the City Council approved the Strong Communities budget on June 21, 2022. Total budgeted revenues are $14,027,000 from sales tax activity. The FY 2022-23 adopted expenditure budget of $16,059,648 was increased by $400,075 for encumbrances rolled from the prior year and $13,409,615 capital appropriations for total expenditure authority of $29,869,339 as of March 31, 2023.
Present Situation
Attached for review by the Strong Communities Advisory Committee is the Second Quarter (Attachment A) and Third Quarter (Attachment B) financial reports for
FY 2022-23.
Total revenues received for sales tax transactions were $5,456,852 as of December 31, 2022, and $9,541,021 as of March 31, 2023.
Also, attached is the California Department of Tax and Fee Administration (CDTFA) sales tax revenue report for the quarters ended March 31, 2023 (Attachment C). The CDTFA data shows Strong Communities gross revenues of $4,245,470 for the quarter covering October, November, and December 2022 and $3,714,467 for the quarters covering January, February, and March 2023.
Expenditures through the second quarter of the fiscal year were $3,734,971. As of March 31st, total operating expenditures of $5,394,288 were 49% of the annual operating budget. Expenses for Library programs were 46% of budget and Recreation Programs were 50% of budget.
Total salaries and benefits expenditures were $2,892,428 at the end of the third quarter with approximately 33% for Library programs and 67% for Recreation programs. Staffing expenses reflect the filling of approved full-time positions and part-time positions required to implement the restoration of hours of service which began in July 2018. Other major expense categories and expenses through the third quarter of FY 2022-23 were:
• Library Materials $622,553
• Utilities $388,333
• Facility Maintenance $518,079
Capital Projects, which are budgeted at $18,759,615 report $0 expended through the third quarter of the fiscal year. Many of the capital projects have multiple funding sources. Project expenses occur throughout the year and are later allocated to the correct funding source. Actual capital project expenses will be allocated in the financial system at year-end. The table below shows all project expenditures as of March 31, 2023 of $19,714,321, as well as total funding from Strong Communities tax dollars ($24,814,000) and other funding sources ($24,515,000).
As of March 31, 2023 (FY 2022-23 Third Quarter)
Attachment A - Strong Communities FY 2022-23 Budget Update - Second Quarter
Attachment B - Strong Communities FY 2022-23 Budget Update - Third Quarter
Attachment C - Measure M Revenues CDTFA Quarterly Distribution Report